AT&T reports first quarter earnings

The latest numbers in from AT&T suggest the U.S. is hitting its smartphone plateau, with the carrier reporting a loss of 69,000 devices from its contract plans in the first quarter. It’s the first time it has experienced such a downturn.

On the flip side, it added 365,000 post-paid tablets to plans, which usually carry lower monthly fees. Overall, earnings grew 3.2 per cent, with revenue dropping 1.5 per cent.

“The business environment is challenging, and the overall economy is challenging,” AT&T Chief Financial Officer John Stephens was quoted as saying.

Wireline revenues were down 1.8 per cent compared to the same period last year, and total business revenues were also down 3.4 per cent.

“Both reflected a slow economy and weak government and business spending,” states an AT&T press release. “Overall, declines in legacy products were partially offset by continued double-digit growth in strategic business services.”